The big defender is set to officially announce his intentions in a statement expected later today (Sunday) from Monaco where he is watching the F1 Grand Prix.
Campbell has demanded a £20m three-year deal including a clause that he can walk away from the club as a free agent if we fail to achieve a Champions League place by the end of next season. This we found unacceptable.
For our part, we had made Sol an offer that would have made him the highest paid player in our history and one of the best paid players in the Premiership.
However, there was no room for flexibility in his demands, leaving the club disappointed that this issue could not have been resolved six months ago when Sol Campbell stated that his decision was not about money.
In the meantime, we have brought in former England manager Glenn Hoddle and have signed two international players - Goran Bunjevcevic (awaiting work permit) and Teddy Sheringham - sharing our vision for the future with Sol and keeping him abreast of our intentions and plans.
We are determined that we will be a European competing club again, but clearly - and sadly - Sol does not share that view. In the end, no player can be bigger than the club and if he has made the decision that he does not want to play for us, then that is it.
We wish him all the best for the future and hope that he enjoys success in every way. We will certainly miss him.
Sol Campbell will leave the club having rejected our latest contract offer.